Which of the Following Is Not True of Accounting Principles

question 43

Multiple Choice

Which of the following is not true of accounting principles?

• A) Financial accountants follow generally accepted accounting principles (GAAP).
• B) Following GAAP allows accounting information users to compare one company to another.
• C) A new accounting principle can be adopted with stockholders' approval.
• D) The Financial Accounting Standards Board (FASB) has primary responsibility for developing accounting principles.

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Definitions:

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Social Factors

Elements within a society that influence individuals' behaviors, attitudes, and life outcomes, such as family, education, and economic status.

Attribution Theory

is a psychological theory focused on how individuals interpret events and how this relates to their thinking and behavior, particularly how they assign causality to events and actions.

Declining Economy

A period marked by a decrease in economic activity, leading to lower GDP growth, employment, and spending.